Dublin Bus is to get funding to provide 100 extra buses between now and next year, with a further 100 coming from the private sector, Minister for Transport Martin Cullen announced.
Mr Cullen said in the greater Dublin area there was a requirement to expand bus services.
This would require an increase in the total number of buses to about 1,800 under Transport 21, with a requirement for at least 200 extra buses over the next two years.
"The Government has decided to meet this initial requirement by providing up to €30 million immediately to enable Dublin Bus buy 100 additional buses for delivery over the period 2006-07 and by mandating the proposed Dublin Transport Authority (DTA) to procure the additional 100 buses from the private sector to provide services on new routes," he added.
"The 100 buses procured from the private sector will form part of an initiative to facilitate the entry of new private operators by awarding franchises to operate routes, accounting for 15 per cent exclusively to such operators by way of competitive tendering.
"Following this period, all new routes will be subject to a competitive tendering process open to all operators."
Mr Cullen said that the precise arrangements would be approved by the Government on the basis of proposals from the DTA.
This approach, the Minister added, would encourage new investment and innovation in the Dublin bus passenger market.
Fine Gael spokeswoman Olivia Mitchell said the impact of the extra 100 buses on the transport situation in Dublin would be minuscule.
However, she welcomed the fact that there would be an improvement.
She said the extra buses should be targeted in the M50 area to bring people living on its far side into the city.
"It has become unbearable for people living on either side," said Ms Mitchell.
"The M50 has become like a wall imprisoning people inside and outside that road which was supposed to liberate us. It has done exactly the opposite," she added.
Labour spokeswoman Róisín Shortall said that only 20 buses had been provided between 2001 and this year.
"In Westmoreland Street, on any evening, there are hundreds, if not thousands, of people being refused access on to buses," Ms Shortall said.
Green Party spokesman Eamonn Ryan said the Government had managed the transport system in an incompetent manner.
